Lynn Smith, director - development management at M&G Real Estate, said: “There is a clear occupier appetite for high quality office space in Glasgow and a lack of supply in the city’s office market, which makes it a prime location for investment. We are confident that 33 Cadogan Street will attract a strong line-up of tenants, bringing new jobs to the city, and we are looking forward to beginning this exciting project.”

Analysis by commercial lettings agent JLL found office supply fell below trend to just 8.22% over the first quarter, with just two new build Grade A developments with limited space on the market – with no speculative developments presently underway.

Work on the new building isn’t expected to get underway until the second quarter of 2018 however.

17 Comments

The same patter we heard from the developers of consented office developments at atlantic square, the opposite side of cardogan street, refrew street, bothwell street, Central quay, skypark etc. Low supply, high demand- we'll be on site soon!

Despite it's flaws I hope this development goes ahead. I'm not convinced though by the 'lack of supply' argument. It looks like JP Morgan could be hotfooting it to Dublin, leaving behind a massive empty building on Waterloo Street. With most of the Broomielaw still lying derelict the much-trumpeted IFSD is looking like a damp squib.

ron, Scotland is not the highest taxed place in the UK. It is actually the lowest taxed for both commercial and individual tax payers over the full list of taxes, and property prices are significantly lower.

Ron, I think you'll find it's exactly the same. The Scottish Government just didn't pass on the two-faced bribe of increasing the threshold at which you start to pay 40%, whilst telling everyone how austerity in necessary. And I assume you mean the Higher rate of 40%, as the top rate of 45% starts at 150k throughout the UK. I doubt it has impacted Glasgow office demand overly. Not outside of Tory fever-dreams, anyway.

And JPM only employ software developers in Glasgow, not bankers, so there is no reason for the jobs to be directly impacted by Brexit. There are no rules that your software needs to be written within the EU. I believe they have just signed a lease to take an extra floor at their secondary (Bothwell St) office to accommodate growth.

The reasons for the IFSD struggling to take root goes all the way back to the 2008 collapse and has diddly squat to do with independence or brexit. If anything independence within the EU would offer a huge attraction to businesses looking to relocate from Brexit.

@ #6 The Independence movement is the reason that this project will stall?!? What about the massive cluster f@$ that is hard brexit? Our economy will fall off a cliff edge once brexit is concluded. We will be a small isolated island nation with no trade deals, and the tories at the helm. This is the reason that our economy is stalling, that this project and many other projects will stall/have already stalled, not the Independence movement, whose aim is for Scotland to remain in Europe (which Scotland voted for in June 2016).

Brexit is the cause for concern, not some possibility of a second independence referendum.
I am sitting on the fence regards the pros and cons of independence, although it strikes me that an independent Scotland, within the EU, would be an ideal place for a lot of these London financial relocations. Well established banking centres in Edinburgh and Glasgow, same language, just up the road. Brexit could well be an opportunity for Scotland, if it stays within the EU.

Back to the topic at hand, and this proposal is welcomed. It is clear that there is a dearth of Grade A offices proposals, so this is badly needed. Bit formulaic, but an improvement on existing.

On the architecture; strong form, if delivered with rigour could be very pleasant. Plinth and set back top floor are fairly standard devices, but inoffensive. Presumably the development wont offend too many, as the architecture is pretty 'safe'?

Whatever your views on Independence, no-one can argue that it is this possibility rather than Brexit that is making Scotland and Glasgow less attractive places to invest. If it was Brexit then how come London and Manchester are still booming and the economy growing whilst Scotland actually declined in the last quarter of 2016. Its time it was put off for a generation as promised so that the Scottish economy can get back on its feet again.

#15 I disagree entirely. Of course you can argue that Brexit is the threat. All of these banks looking to relocate to European cities are not doing so because of the possibility of an independence referendum. The reason they are doing so is because Brexit IS a reality. I have no confidence at all that the government will secure any kind of meaningful deal with Europe, and evidently neither do the banks.

London is London. All money from the UK flows there. This country is still run like we are an Empire and everything must flow through the capital, yes?

Manchester is the chosen "Northern Powerhouse". Have a look at other cities in the north of England and how they complain that Manchester is the one getting all of the investment. Mr Osborne and his pet project. Still tokenism if you ask me.

In any case, this is all very political and off topic. Perhaps we should stick to discussing the matter at hand?